GST: Assocham for penalty waiver during transition period

Tribune News Service

New Delhi, August 26

Industry is preparing to take up concerns and uncertainties on the implementation of the Goods and Services Tax (GST) with the Empowered Committee of State Finance Ministers.

Assocham is seeking waiver of any penalties on unintentional compliance errors which may occur during the transition period of GST as was done in the case of introduction of service tax.

The Empowered Committee of State Finance Ministers will meet traders and industry chambers next week to seek feedback on apprehensions and problem areas.

Seeking adequate time for preparation of the required compliance systems for the industry, the Assocham’s memorandum to the empowered panel on GST is seeking waiver of penalties.

“While the industry wants the GST to be introduced at the earliest in view of its benefits to all stakeholders, the Government and Empowered Committee should give adequate time for preparation for its smooth transition. Considering significant increase in documentary requirement and digitisation of the entire GST process, industry has to gear up and change their accounting and computer system after the GST Rules are released,” said Sunil Kanoria, president, Assocham.

It said in such a mega tax reform, there will be requirement to issue clarification on various GST provisions and hence the governments at the Centre and states should gear up for such facility.